Fri Oct 25 07:59:53 UTC 2024: **Summary of the Danish Power IPO News Article:**

1. **Company Overview**: Danish Power Ltd., a transformer manufacturing company based in Rajasthan, is set to launch its Initial Public Offering (IPO) in the SME (Small and Medium Enterprises) segment.

2. **IPO Details**:
– The IPO aims to raise ₹198 crores and is expected to be the largest SME IPO so far.
– Subscription opens on **October 22, 2024**, and closes on **October 24, 2024**.
– The price band is set between **₹360-380 per share**.
– Anchor investors can subscribe on **October 21, 2024**.

3. **Comparison with Previous IPOs**:
– The previous largest SME IPO was by KP Green Engineering at ₹189.5 crores in March 2024.
– Nine SME IPOs worth over ₹100 crores occurred in 2024, contrasting with only one such IPO in 2023.

4. **Issue Size and Structure**:
– Danish Power’s issue size is **₹197.90 crores**, with **52.08 lakh fresh equity shares** to be issued, and no Offer for Sale (OFS) component.

5. **Use of Proceeds**:
– ₹37 crores for building factory sheds and installing additional machinery.
– ₹85 crores for working capital requirements.
– ₹20 crores for debt repayment.
– Remaining funds for general corporate purposes.
– The company’s overall debt is projected to considerably reduce post-IPO.

6. **Financial Performance**:
– For the year ending March 2024, Danish Power recorded a revenue of ₹332.5 crores and a consolidated net profit of ₹38.07 crores.
– For the quarter ending June 2024, revenue was ₹71.93 crores with a profit of ₹9.98 crores.

7. **Market Position**: Danish Power competes with companies like Indo Tech Transformers and ABB India, and has clients like Tata Power Solar and Torrent Power.

8. **Disclaimer**: The information provided is for informational purposes and does not constitute investment advice. Investors should consult experts before making investment decisions.

This article emphasizes the significant milestone for Danish Power Ltd. in the SME IPO market and outlines its plans for the capital raised through the public issue.

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